Credit/Debit Processing Fees - Which? Super Complaint to the OFT

[Michael Browne]

Stop 'rip off' charges Pledge your support

 

Which? is issuing a super complaint to the Office of Fair Trading over the fees retailers charge consumers for paying by credit or debit card. Low cost airlines are amongst the worst offenders. We want upfront costs, fair charges and for retailers to absorb the cost of the fee to process a debit card payment.

 

Add your name to our pledge. Please ask your friends and family to do the same. The more support we have, the stronger our case.

 

Pledge your support here:

http://www.which.co.uk/campaigns/personal-finance/card-surcharges/pledge-your-support/

 

 

 

Consumers are increasingly facing high fees – known as surcharges – when purchasing goods and services when paying by credit and debit cards.

 

Which? accept that retailers face some costs when processing card payments. However, these charges are usually above and beyond what it costs the retailer. We think this is unfair so we're issuing a super complaint to the Office of Fair Trading (OFT).

 

Low-cost airlines are among the worst offenders, with some charging a fee per passenger, per leg of the journey, in spite of the fact that they only have to process one transaction.

 

What is the real cost of using different cards and payment methods?

When paying by debit card, the retailer pays pence not pounds to process the payment. A fairer cost would be 10-20p.

 

The cost of a credit card charge to a retailer is calculated as a percentage of the value. We think the real cost of processing a credit card transaction is no more than two percent of the value of the purchase. Retailers often charge a fixed value – so you could end paying more than the true cost.

Read more: http://www.which.co.uk/campaigns/personal-finance/card-surcharges/about-the-surcharge-super-complaint/

[wittsend]

done lets get Ryanair where it hurts

[Michael Browne]

Sneaky' card charges to face OFT probe

 

 

11 February 2011

Sneaky charges imposed by budget airlines and other companies for card payments may be outlawed after a 'super-complaint' by consumer group Which?

 

Transaction booking fees are defended by companies, like Ryanair and other budget airlines, due to the administration fee associated with the cost of booking.

 

However, Which? argues that the cost of processing a payment is a fraction of the transaction fee imposed on customers.

The consumer group said that on average it costs 20p per debit card payment and no more than 2% of the total value for a credit card transaction.

Which? claims that low-cost airlines are among the worst offenders, with some charging a fee per passenger, per leg of the journey, in spite of the fact they only have to process one transaction.

 

Read more: http://www.thisismoney.co.uk/bargains-and-rip-offs/article.html?in_article_id=522706&in_page_id=5#ixzz1DeKyUemq

[honeybee13]

done lets get Ryanair where it hurts

 

I couldn't agree more. I heard their guy on 'Today' the other day, with the normal attack on Which in an attempt to avoid the main issue. I've signed up too.

 

My best, HB

[Which?Action]

Hello all,

 

Thanks for your support! I work for Which? and we've been so pleased with the reaction to this campaign - it seems most people have noticed these charges and want to do something about it. If you haven't pledged yet, please click on the link in the OP - the more support we receive the more likely we are to make a difference.

 

For those who have pledged - just wanted to say a HUGE thank you! We've had over 8000 people sign the pledge so far, which just goes to show that these charges have been annoying people (including me - I always try and get the cheapest flights possible!) for far too long.

 

Nikki Whiteman (WhichAction - we're the online campaigning arm of Which?)

[Neonin]

Having never been on a plane in my life this is not something I have come across. However, after reading up on it I signed the pledge. This sort of unscrupulous behaviour should be fought wherever it is found!